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West Wits Mining Limited

West Wits Mining set to unlock value of Indonesian gold project

The company had previously written down to no value its holding in the Derewo River Gold Project.

West Wits Mining Ltd - West Wits Mining set to unlock value of Indonesian gold project
West Wits will be free carried until completion of all feasibility work

West Wits Mining Ltd (ASX:WWI) has signed an agreement with Far East Venture Group (FEVG) to facilitate the ongoing maintenance and development of the Derewo River Gold Project, Indonesia.

Under the agreement, all responsibility for managing and funding the project through to feasibility will be assumed by FEVG.

The agreement provides that feasibility shall be taken to have been achieved on the issue of a detailed feasibility study by an independent expert supported by relevant exploration (including as required drill results) to verify an economic mineral resource for development.

Free carry until completion of feasibility work

Under the agreement, WWI will dilute its equity interests in PT Madinah Quarataa’n (PTMQ), the Derewo River Gold Project company, from the current 64% to 10%, which 10% interest will be free carried until completion of all feasibility work.

This dilution of WWI’s interest in PTMQ will be effected upon implementation of the agreement which is expected in the coming weeks.

Following the implementation of the agreement, all management for the operation of the Derewo Gold Project will be the responsibility of FEVG which will hold 54% equity in the project.

Managed by co-founders of Far East Resources Fund

FEVG has a focus on investing and fundraising to develop mining assets in South East Asia.

The company was started by two of the co-founders of Far East Resources Fund Ltd to build upon their success in raising capital and developing operating mining assets in Indonesia.

In circumstances where FEVG fails to progress the project to feasibility within three years, WWI at its election may call for a retransfer of its shares in PTMQ for a consideration of one dollar thereby reinstating its original equity holding at 64%.

WWI had previously written down to no value its holding in the Derewo River Gold Project.

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